How to Start Investing in Canada with $100: A Step-by-Step Guide for Beginners

man

Many people think that investing requires thousands of dollars, connections, or experience in the stock market. But this is a myth: today in Canada, you can start investing with as little as $100 CAD — and build a solid financial foundation. Below is a detailed step-by-step guide on how to do it safely, wisely, and effectively.

Step 1: Define your goal and investment strategy

Before investing money, it is important to understand why you are investing.

Ask yourself the following questions:

  • Do I want to create a reserve fund?
  • Am I planning to save for retirement, a house, or education?
  • Am I willing to take risks for potential profits?

If you are investing for 5–30 years:

It is recommended to focus on long-term capital growth — this could be the stock market through ETFs, shares of large companies, or index strategies.

If the term is 1–3 years:

It is worth betting on low-risk instruments — bonds, GICs (guaranteed investment certificates), or high-yield savings accounts.

Important: investing is not a way to “get rich in a month.” It works best over the long term.

Step 2: Choose a brokerage platform

In Canada, you can’t just “buy stocks” directly — you need a broker. Fortunately, there are now many online platforms available with low entry thresholds and minimal commissions.

Best platforms for beginners with $100:

  • Wealthsimple Trade — a completely free platform with no transaction fees and no minimum deposit. Supports the purchase of stocks and ETFs.
  • Questrade — commission-free ETF purchases, but a minimum deposit ($1,000) is required. Convenient for more advanced investors.
  • RBC Direct Investing, TD EasyTrade — reliable, but often charge a commission ($6.95+ per trade).
  • Interactive Brokers (IBKR) — geared towards active investors, not the best choice for starting with $100.

Recommendation: start with Wealthsimple Trade. Registration takes 10–15 minutes, and the platform is convenient, especially on a phone.

Step 3: Open an account and fund it

During registration, you will be asked to choose an account type. The most popular are:

TFSA — Tax-Free Savings Account

Profits and dividends are not taxed.

  • You can invest in ETFs, stocks, GICs, and even cryptocurrency.
  • The contribution limit for 2025 is $7,000 CAD.

RRSP — Registered Retirement Savings Plan

  • Contributions reduce taxable income.
  • Earnings are tax-free until withdrawal.
  • Ideal if you are working and paying taxes.

Non-Registered Investment Account

No contribution limits, but income is taxable.

Tip: Start with a TFSA — it offers maximum flexibility and tax advantages for small investments.

After selecting an account, connect your bank account and deposit $100 CAD.

Step 4: Select assets to invest in

With $100 in 2025, you can purchase:

ETFs (exchange-traded funds)

The ideal tool for beginners. A single ETF can include dozens or hundreds of companies. Risks are diversified.

Examples:

  • XIC — the entire Canadian market.
  • VFV — S&P 500 Index (USA).
  • VGRO — a diversified portfolio from Vanguard (growth).
  • VCNS — a more conservative portfolio.

You can buy ETF shares directly through Wealthsimple — even if one unit costs $40–$100.

Stocks

You can buy one or two shares of well-known companies, for example:

  • Bank of Nova Scotia (BNS) — a Canadian bank with dividends.
  • Shopify (SHOP) — a large tech company from Canada.

GIC (Guaranteed Investment Certificates)

  • An almost risk-free instrument.
  • Rates ~4–5% per annum (in 2025).
  • But the money is “frozen” for a period of 6 months to 5 years.

Tip for getting started: invest your first $100 in an ETF such as VGRO or XIC — minimal risk, high diversification.

Step 5: Set up regular investments

Once you’ve started, keep going! The most powerful effect in investing comes from long-term regularity. This is called “dollar-cost averaging.”

Example:

  • Invest $50–100 per month.
  • Set up automatic replenishment on your brokerage platform.
  • Buy the same ETFs on a regular basis.

Even if the market fluctuates, you continue to buy at different prices, which over time lowers the average entry price.

Step 6: Monitor and adjust your portfolio

Investing is not a lottery. From time to time (every 3–6 months), it is worth:

  • Checking that everything is in line with your strategy.
  • Rebalance your portfolio: if stocks have risen significantly, it may be worth adding some bonds.

Update your goals: maybe you have children, a new income, or want to change your strategy.

Use resources such as:

  • Wealthsimple Insights
  • PersonalFinanceCanada (Reddit)
  • MoneySense.ca

Conclusion

Investing with $100 in Canada is not only possible, but also smart. It’s a habit, not an amount. With each subsequent investment, you build a future where your money works for you.

Quick summary:

  • Open a TFSA with Wealthsimple Trade.
  • Buy $100 worth of ETFs or stocks.
  • Set up regular contributions.
  • Repeat and learn.
By Blog, Capital investments